L4M4 CERTIFICATION EXAM | VALID L4M4 TEST VOUCHER

L4M4 Certification Exam | Valid L4M4 Test Voucher

L4M4 Certification Exam | Valid L4M4 Test Voucher

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CIPS Ethical and Responsible Sourcing Sample Questions (Q59-Q64):

NEW QUESTION # 59
Which of the following would you expect to find in an Invitation to Tender? Select THREE

  • A. pricing schedule
  • B. awarding body
  • C. qualifications required
  • D. deadline
    (Correct)
  • E. risk assessments

Answer: B,C

Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn'tfind pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)


NEW QUESTION # 60
Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?

  • A. It helps the buyer to increase stock varieties to avoid stock-outs
  • B. It is the only approach that enables the buyer to isolate the best supplier from among many
  • C. It increases process flexibility and switching using a range of approved suppliers
  • D. It is the only approach that supports the open tendering process

Answer: C

Explanation:
Multi-sourcing allows organisations to diversify their supply base, providing flexibility, and reducing risk by having multiple suppliers. It is an effective strategy to prevent over-dependence on a single source and allows for competition among suppliers, promoting quality and ethical standards in the supply chain.


NEW QUESTION # 61
When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO

  • A. The organisation is new
  • B. The organisation has lots of fixed assets
  • C. The organisation does not employ many people
  • D. The organisation has no loans or credit cards

Answer: B,D

Explanation:
New organisations or those with no loans/ credit cards may have low credit scores. This is simply because they do not have enough financial history to make their scores good. That means banks au-tomatically class them as higher risk, because they simply don't know that they're trustworthy yet.


NEW QUESTION # 62
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?

  • A. Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest
  • B. No, the buyer's recommendations are not relevant to the final sourcing decision, which must be taken by the business managers
  • C. No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers
  • D. Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender

Answer: D

Explanation:
Engaging with business managers while making sourcing recommendations ensures that the buyer considers multiple perspectives, reducing potential biases and improving decision-making. This approach aligns with ethical sourcing practices by promoting collaboration and transparency in tender decisions.


NEW QUESTION # 63
What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

  • A. Earnings per share
  • B. Profitability ratio
  • C. Liquidity ratio
  • D. Dividend per share

Answer: C

Explanation:
Liquidity ratios, such as the current and quick ratios, evaluate a company's ability to meet short-term liabilities with current assets. This metric is crucial for assessing a supplier's financial stability, ensuring continuity and reliability in the supply chain, which aligns with ethical and responsible sourcing principles.


NEW QUESTION # 64
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